Governor Brown Orders Immediate State Car Cutback

1-28-2011

SACRAMENTO – In an effort to cut the state’s passenger vehicle fleet in half, Governor Jerry Brown today directed all state agencies and departments to immediately halt new car purchases and turn in taxpayer-funded cars that are not essential to state business.

“There is a lot of wasteful spending on cars that aren’t even driven,” Brown said. “And we can’t afford to spend taxpayer money on new cars while California faces such a massive deficit.”

Brown said his goal is to halve the number of the state’s passenger cars, trucks and home storage permits—which allow state employees to use passenger cars for their daily commute.

“Fifty percent is a starting point. If we find more waste, we’ll make more cuts,” Brown added.

Brown will also move underutilized vehicles to new locations, so that the fleet is more efficient overall. Cars that are not needed will be sold.

The Department of General Services estimates that there are approximately 11,000 passenger cars and trucks in the state fleet, and approximately 4,500 home storage permits, that don’t serve a health or public safety function. Brown’s goal is to cut these totals in half.

Brown’s order directs every agency secretary and department director to immediately review their organization’s home storage permits and withdraw those that are not essential or cost-effective. He explained that some employees may need a car around-the-clock because their jobs are public health and safety focused, or it is more cost-effective for the state for certain employees to have a car than not. The review will take this into account.

Brown’s order instructs agencies and departments to analyze the purpose, necessity and cost-effectiveness of every fleet vehicle, and submit a plan for cutting unneeded vehicles. Non-essential vehicles must be sold or transferred within 120 days of the plan’s approval.

The order additionally prohibits agencies and departments from buying new vehicles for non-emergency use.

Earlier this month, Brown issued an Executive Order directing state agency and department heads to collect and turn in 48,000 government-paid cell phones.

The text of the Executive Order is below:

EXECUTIVE ORDER B-2-11

WHEREAS the Governor’s 2011-12 budget proposes to close the state’s structural budget deficit in a balanced and sustainable manner, in part through substantial reductions in state operational expenses; and

WHEREAS the Governor’s 2011-12 budget proposes to cut state operational expenses by reducing waste and promoting efficiencies; and

WHEREAS the state fleet has more than 50,000 vehicles and mobile equipment ranging from light to heavy-duty vehicles, emergency response vehicles, aircraft, boats, motorcycles and construction equipment; and

WHEREAS the state fleet has a replacement value exceeding $1.5 billion, and annually uses more than $90 million in fuel and incurs tens of millions of dollars in other operating expenses; and

WHEREAS state agencies report that thousands of vehicles are underutilized each year; and

WHEREAS state agencies report that approximately 4,500 vehicle home-storage permits have been issued that allow employees to take home vehicles that are used for purposes unrelated to public safety, health, or essential services; and

WHEREAS lowering fuel consumption in the state fleet will cut costs and reduce pollution, including greenhouse gas emissions.

NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of the State of California, by virtue of the power vested in me by the Constitution and the statutes of the State of California, do hereby issue the following orders to become effective immediately:

IT IS ORDERED that each agency secretary and department director immediately review their organization’s vehicle home-storage permits and withdraw those that are non-essential or cost ineffective. By March 1, 2011, each agency secretary and department director shall report their findings and the results of their review.

IT IS FURTHER ORDERED that by February 15, 2011, each state agency and department shall update and certify their vehicle and mobile equipment information that is presently being collected by the Department of General Services, and shall thereafter provide monthly updates to the Department of General Services.

IT IS FURTHER ORDERED that each state agency and department shall conduct an analysis to determine the purpose of, the necessity for, and the cost-effectiveness of, the vehicles and equipment in their fleet. This analysis shall result in a plan to relinquish non-essential and cost-inefficient vehicles and equipment. The Department of General Services shall assist departments in developing their analysis and plans.

IT IS FURTHER ORDERED that each state agency and department shall submit for approval their analysis and plan to the Director of the Department of General Services and the Department of Finance. A schedule for submitting these analysis and plans shall be set by the Director of General Services and shall commence no later than March 1, 2011.

IT IS FURTHER ORDERED that state agencies and departments shall relinquish non-essential or cost-inefficient vehicles and equipment within 120 days when their analysis and plans are approved by the Department of General Services. The Department of General Services shall assist departments in relinquishing non-essential and cost-inefficient vehicles and equipment. Vehicles and equipment should be relinquished by selling them in a manner to maximize returns or by transferring them to other departments where there is a demonstrated need.

IT IS FURTHER ORDERED that the Department of General Services shall provide to the Department of Finance final tallies of the relinquished vehicles. Each department or agency shall provide to the Department of Finance the amount of fiscal savings for the relinquished vehicles. The Department of Finance shall evaluate the total savings achieved and adjust departmental budgets to reflect those savings as appropriate.

IT IS FURTHER ORDERED that state agencies and departments are prohibited from purchasing any vehicles for non-emergency use except when:

The agency or department has fully relinquished its vehicles and equipment pursuant to its analysis and plan approved by Department of General Services;
The purchase is necessary to protect the health and safety or security of the public;
The purchase is necessary to provide critical services and functions; or
The purchase will result in significant cost savings.

The Director of the Department of General Services must approve all such purchases, subject to the review of the Secretary of the State and Consumer Services Agency.

IT IS FURTHER ORDERED that this Executive Order shall supersede EO S-14-09 dated July 17, 2009.

IT IS REQUESTED that other entities of State government not under my direct executive authority conduct an analysis to determine the purpose of, the necessity for, and the cost-effectiveness of their vehicles and equipment in order to reduce additional waste and unnecessary costs.

This Executive Order is not intended to create, and does not create, any rights or benefits, whether substantive or procedural, or enforceable at law or in equity, against the State of California or its agencies, departments, entities, officers, employees, or any other person.

I FURTHER DIRECT that as soon as hereafter possible, this Order shall be filed with the Office of the Secretary of State and that it be given widespread publicity and notice.

IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 27th day of January 2011.